Taxpayers funding Vic soccer club: report

Taxpayers will pay $4.5 million to a Victorian Premier League club over the next 15 years as part of a relocation deal to benefit Collingwood Football Club, according to reports.

The deal costs taxpayers up to $300,000 a year and is paid as compensation to South Melbourne FC for giving up its exclusive lease at the Bob Jane Stadium in South Melbourne, the Herald Sun reports.

Former sports minister James Merlino signed off on the deal in 2009 when the then Brumby government wanted Athletics Victoria to shift to the stadium, according to the newspaper.

Collingwood then moved into Athletics Victoria's old base, Olympic Park.

The Herald Sun uncovered details of the payments during a Victorian County Court case which will determine whether South Melbourne FC must repay a group of supporters who loaned the club money in 2004.